RADIO PATENTS

Dominion, Volume 27, Issue 189, 9 May 1934, Page 10

RADIO PATENTS

Transfer of Liability For Payment THE NEW AGREEMENT Indications For More Costly Receiving Sets The reported new agreement concerning the payment of royalties for patent rights between the retail radio trade and representatives of the patentees was the subject of some inquiries by “The Dominion" yesterday. From what the reporter learned it is fairly obvious that listening-in D to be a more expensive recreation in the future in New Zealand than in the past. The announcement of the agreement, made in Auckland, was considered by many of those concerned to be premature, as negotiations between the representatives of the patentholders and the dealers were still proceeding. For that reason no authoritative statement would be made. It was. however, gathered that in the main the message from Auckland fairly- outlined the situation governing the payments made for patent rights in connection with radio valves. As ’stated, the Post and Telegraph Department as collectors of the radio fees, had been paying 3/- out of every license fee for patent, rights. But that was only to Amalgamated Wireless (Australasia), Ltd., which did not nearly cover all that was due to the holders of the patents that were being used. As against 3/- per license fee, the new proposal which, it is stated, will operate on June 1, will mean 3/6 per anode stream; in other words 3/6 per valve. This is not expected to operate on existing sets now in use, but would take effect on all new sets or new valves for sets now in use. “Very Lucky So Far,” Owners of radio should not think that the proposed new charge is an imposition. As a matter of fact, one Englishman concerned in the trade considers that New Zealand has been very lucky so far, as when he left Home In 1925 the covering charge for patent, rights was 12/6 per valve, and in view of .the complex ingenuity of some of the patents involved’ in the creation of a radio valve, he did not. consider that sum the least bit exorbitant. In regard to that contention, it is pointed out .that the ordinary radio license fee in England is onlv 10/- a year for an amazing service, whereas it is 30/- a year in New Zealand for a service tjjat is necessarily limited in scope, variety, and artistry. £l5O Fidelity Bond. Next month all importers and manufacturers of receivers will have to provide a fidelity bond of £l5O for the patent right holders, thus covering themselves to the minimum extent allowed by. the patentees for producing or dealing, says the “Auckland Star." The £l5O minimum guarantee will in no way hinder the small trader, as in the ordinary course he draws his supplies from the big importer or constructor, but it will effectually eliminate the manufacturer who is at present running a “home industry” by buying parts, assembling a few sets, and selling them to friends or others. The one-man radio constructor will find it unprofitable to pay a £l5O minimum royalty. Even though imported sets have probably paid dues in some form to the patent right holders in the country where the. sets were made, their importers will still have to pay the royalty at the rate of 3/6 per anode stream when they land in New Zealand. How the individual will fare who buys abroad a single set for home use has not yet been made clear. On June 11 all radio dealers will be required through this agreement to. declare their stock, and every unsold receiver will be subject to the new charges. It will be simple to collect these from the big importers and manufacturers, but the “small fry” will offer a more difiicult problem, though, as the Post and Telegraph Department regulations require the sale of every receiver to be recorded, it will be possible to trace those who try to avoid the new demands. In connection with future patents which may be evolved for use in radio reception, the representatives of the patentees have undertaken to supply any new apparatus for which they may be the agents at a price to be governed by the cost of the new patents. Agency to be Set Up. For the present, the "Star" continues, Amalgamated Wireless, with its office at Wellington, is acting as agent for the group controlling, patents, but in two or three weeks some definite representative agency will be set up in New Zealand to collect the revenues due from the trade. After June 1 it is anticipated that each set sold in New Zealand will bear a plate indicating that a royalty lias been paid upon its components, and that any dealer who sells a radio without such a plate will be liable to prosecution. It is the intention of those controlling the patents to set up a laboratory in Wellington for the assistance of the local manufacturer, ami for assessment of the payment to be made on all future sets. Those who have purchased sets before June 1 will not be affected by these royalty claims, as they have been covered by the departmental payments which then expire. The Government will at that date be relieved of an annual contribution of approximately £15,000, which it has been paying on listeners’ behalf from its share of the license revenue. Presumably the Broadcasting Board has entered into its own arrangements for the patents it uses in broadcasting, but no official statement has been made concerning the amounts paid. The B-class stations, too, will be required to pay on a basis agreed upon. Summed up, the whole situation is that radio sets will in future have to bear, through their sale, the additional cost, formerly avoided by the department’s annual payments. The charge upon annual license fees will disappear, but sets, according to their power, will Increase in price from approximately £1 to £3. What is to be done with the £15,000 saved is a matter upmi « I h [lie Government has the final say Many owners of sets are of the opinion that there should be a correspwulinit reduction of 3/- per annum

in the license fee payable to the Government through the Post and Telegraph Department. LISTENER’S VIEWPOINT Full Explanation Sought Referring to the new agreement. Mr. H. D. Bennett, president of the New Zealand Federation of Radio Listeners, stated yesterday that, in view of the uncertainty in the minds of listeners as to the effect, if any, of the changed system of royalty payments on the annual license fees, a statement from the Post and Telegraph Department and the Broadcasting Board was called for. Apparentlj*. said Mr. Bennett, the position was Hint tlie Post and Telegraph Department, after June 1, would be relieved of tlie annual payment of 3/- royalty for each license. Instead, (lie royalty bill was to be footed by each listener when be purchased his set. It was desirable that tlie benefit thus gained by Hie department should be passed on to the board, cither 10 enable the board to.improve its service or in order Hint the benefit should in turn lie passed on to the listener It had been suggested Hint Hie amount of 2/- retained by tlie department to cover expenses was insufficient, and that the department would seize the opportunity of gaining further revenue. If this were to be tlie ease listeners were entitled to a full explanation from the department us to why 5/- per listener was now required for “expenses,” whereas formerly the department made do with 2/-. At the present time the Broadcasting Board received 25/- per listener with which to maintain its service. An additional 3/- per listener should enable the board to provide an appreciably better service: If this were not eonsidered necessary, then the burden on the listener could well lie eased, especially as it was he who was now to carry the burden of tlie royalty charges.